SEOUL , South Korea -LRB- CNN -RRB- -- Hyundai Chairman Chung Mong-koo escaped a prison sentence for embezzlement after a South Korean court ruled Thursday to instead impose a suspended five year sentence , according to a company spokesman .

Hyundai Motor chairman Chung Mong-Koo , center , leaves the High Court after his trial in Seoul in June .

In February , the 68-year-old executive was sentenced to three years in prison after being convicted of embezzling money from the South Korean conglomerate . He appealed that verdict and on Thursday the company said Chung will now only be required to undertake community service .

Chung was accused of funneling $ 106 million in company money into a slush fund to seek favors from the government and with breach of trust for incurring more than $ 300 million in damages to the company .

Hyundai is the world 's sixth-largest automaker and a pillar of South Korea 's economy .

Chung spent two months in jail after his arrest last April before being released on $ 1 million bail . He admitted using affiliated companies to set up slush funds , but said he knew no details of the arrangements . E-mail to a friend

CNN 's Eunice Yoon contributed to this report .

@highlight

Hyundai Chairman Chung Mong-koo has escaped prison for embezzling

@highlight

South Korean court ruled instead to impose a suspended five year sentence

@highlight

In February , the 68-year-old executive was sentenced to three years in prison

@highlight

Chung was accused of placing firm 's money in fund to earn government favors